Several organizations including state institutions who had advertised on Sri Lanka Rupavahini Corporation (SLRC) have defaulted a sum of Rs 596.8 million, according to Auditor General’s report for 2010. According to the report presented in Parliament, state institutions owed Rs 14.07 million to the Corporation.

This situation has arisen despite SLRC’S credit policy limiting the credit period to one month.

The SLRC had also signed seven advertising agreements amounting to Rs 22.1 million without stating the client’s name, the report said.

Even though there is a system of internal control to obtain the confirmation of the credit control division to ensure the credibility of debtors before the advertisement is telecast relating to ordinary clients agreement, credit have been given repeatedly to clients who had not settled outstanding dues.

According to the Auditor General’s report foreign TV institutions owed SLRC a sum of Rs 6.4 million while the Inland Revenue Department owed Rs 17.8 million.

Two computer programmes which were to be implemented by a contractor in 2008 had not been completed even in 2010 though Rs. 858,000 had been given as advance payment when the contract was given in 2008.

Source: Daily Mirror - Sri Lanka